Glencore Restructures Loans to PolyMet and Acquires Common Share Purchase Warrants

BAAR, Switzerland, March 28, 2018 (GLOBE NEWSWIRE) -- Glencore AG ("Glencore"), a wholly-owned subsidiary of Glencore plc, has entered into an amendment to the purchase agreement with PolyMet Mining Corp. ("PolyMet") and Poly Met Mining Inc. pursuant to which (i) the maturity of an aggregate of US$152 million of outstanding secured convertible and non-convertible debentures has been extended by 12 months, to March 31, 2019, repayable at any time by PolyMet if it is prudent to do so, and (ii) the interest rate on the debentures has been reduced from 12-month US$ LIBOR plus 15 percent to 12-month US$ LIBOR plus 10 percent. Glencore has also agreed to lend up to an additional US$80 million to PolyMet over the next 12 month in five tranches on the same terms as the existing non-convertible debentures, subject to the terms and conditions of the amendment to purchase agreement.

As partial consideration for the amendments referred to above, PolyMet has agreed to issue an aggregate of 6,458,001 warrants to purchase common shares of PolyMet, with each warrant entitling Glencore to acquire one common share of PolyMet at a price of US$0.8321 per share until March 31, 2019. These warrants replace an aggregate of 6,458,001 warrants that expired December 31, 2017.

Glencore currently holds 92,836,072 common shares of PolyMet, representing approximately 29.1% of PolyMet's issued and outstanding common shares. Following the extension of maturity and reduction in interest rate referred to above, the number of common shares issuable to Glencore under the exchange warrant issuable upon conversion of the convertible debenture would increase  to 45,670,560, which would result in Glencore holding 138,506,632 common shares representing approximately 38.0% of the outstanding common shares of PolyMet (assuming no other shares committed under existing compensation agreements were issued by PolyMet).

Including a total of 14,138,627 shares issuable upon exercise of warrants held by Glencore (including the consideration warrants referred to above), but excluding issuance of shares committed under existing compensation arrangements, Glencore would hold a total of 152,645,259 common shares representing approximately 40.3% of PolyMet's common shares on a partially diluted basis (again assuming no other shares committed under existing compensation arrangements were issued by PolyMet).

Glencore's decision to enter into the transactions described in this news release was made for investment purposes. Glencore will continue to review its investment alternatives from time to time and may determine to increase or decrease its equity ownership in PolyMet through the acquisition or sale of additional outstanding common shares or other securities of PolyMet through open market or privately negotiated transactions in accordance with applicable securities laws.

The head office of PolytMet is located at 100 King Street West, Suite 5700, Toronto, Ontario, M5X 1C7.

The head office of Glencore is located at Baarermattstrasse 3, CH-6340 Baar, Switzerland.

Persons who wish to obtain a copy of the early warning report to be filed by Glencore in connection with this transaction may obtain a copy of such report from www.sedar.com or by contacting the persons named below.

For further information, please contact:

Investors

 Martin Fewings
 t: +41 41 709 2880
 m: +41 79 737 5642
 [email protected] 

Ash Lazenby
 t: +41 41 709 2714
 m: +41 79 543 3804
 [email protected] 

Media

 Charles Watenphul
 t: +41 41 709 24 62
 m: +41 79 904 33 20
 [email protected] 

Notes for Editors

Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group's operations comprise around 150 mining and metallurgical sites, oil production assets and agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources, Glencore's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.

Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing sectors. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 146,000 people, including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.